LNG imports down 7.2% in May on stagnant demand

economictimes.indiatimes.com:

LNG imports fell 7.2% year-on-year in May as domestic demand stagnated and local production expanded.

India imported 2,650 million metric standard cubic meters (MMSCM) of LNG in May, lower than 2,854 MMSCM a year earlier, according to the oil ministry data. The country consumed 5,708 MMSCM of natural gas in May, 0.3% higher than in the same month a year earlier.

The data showed that a sizzling summer, which has boosted electricity demand across the country, had no significant impact on gas demand. An executive at a gas marketing company found it hard to explain the decline in LNG imports and stagnation in demand. He said the power sector has increased the use of gas for generation. And the only explanation could be that some other sectors cut down on gas use. Domestic production of natural gas expanded 6.7% in May from a year earlier to 3,105 MMSCM, helping offset the decline in imports. LNG prices have risen in recent months. JKM, the Asian spot LNG benchmark, averaged $11.9 per mmbtu in May, higher than $8.4 in February and $9.3 in May 2023. In June, it rose above $12 per mmbtu.

LNG prices are increasing on demand from Asia with intense summer requiring energy for cooling. Summer is a good time for India's idle gas-fired generators to make money as buyers are willing to pay more for power. In other seasons, gas is unable to compete with other fuels.